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Son Preference and Access to Social Insurance: Evidence from China's Rural Pension Program

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  • Avraham Ebenstein
  • Steven Leung

Abstract

Many scholars argue that the persistence of son preference in China is driven by greater anticipated old‐age support from sons than from daughters and the absence of formal financial mechanisms for families to save for retirement. The introduction of a voluntary old‐age pension program in rural China in the 1990s presents the opportunity to examine (1) whether parents with sons are less likely to participate in pension plans and (2) whether providing access to pension plans affects parental sex‐selection decisions. Consistent with the first hypothesis, we find that parents with sons are less likely to participate in the pension program and have less financial savings for retirement. Consistent with the second hypothesis, we find that an increase in county‐level pension program availability is associated with a slower increase in the sex ratio at birth.

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  • Avraham Ebenstein & Steven Leung, 2010. "Son Preference and Access to Social Insurance: Evidence from China's Rural Pension Program," Population and Development Review, The Population Council, Inc., vol. 36(1), pages 47-70, March.
    • Handle: RePEc:bla:popdev:v:36:y:2010:i:1:p:47-70
    DOI: 10.1111/j.1728-4457.2010.00317.x
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    1. Monica Das Gupta & Jiang Zhenghua & Li Bohua & Xie Zhenming & Woojin Chung & Bae Hwa-Ok, 2003. "Why is Son preference so persistent in East and South Asia? a cross-country study of China, India and the Republic of Korea," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 153-187.
    2. Dewen Wang, 2006. "China's Urban and Rural Old Age Security System: Challenges and Options," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(1), pages 102-116, February.
    3. Avraham Ebenstein, 2010. "The "Missing Girls" of China and the Unintended Consequences of the One Child Policy," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    4. Lisa Cameron & Deborah Cobb-Clark, 2001. "Old-Age Support in Indonesia: Labor Supply, Intergenerational Transfers and Living Arrangements," CEPR Discussion Papers 429, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. Nancy Qian, 2008. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1251-1285.
    6. Cameron, Lisa A. & Cobb-Clark, Deborah A., 2001. "Old-Age Support in Developing Countries: Labor Supply, Intergenerational Transfers and Living Arrangements," IZA Discussion Papers 289, Institute of Labor Economics (IZA).
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